Improved Leverage and Lower Working Capital Underscore Financial Discipline and Execution

Key Performance Highlights

  • Revenue growth driven by improved pricing, supported by favorable fx
  • Platform performance: strong, double-digit growth in UPL SAS (+13%) and Advanta (+20%), each led by volume and pricing; SUPERFORM up by 9%, while UPL Corp declined by 3% due to lower volume, mainly in Brazil
  • Regional performance: robust growth in India (+21%) supported by North America and Europe (+8% each), offset by Latin America and Rest of World (-10% each)
  • Contribution margin accretion (+390 bps) led by improved product mix, pricing, higher capacity utilization and lower input cost, driving overall EBITDA margin (+150 bps)
  • Reported Profit after Tax and Minority Interest (PATMI) at (₹88 cr), up from (₹384 cr) vs. LY, improvement of ~₹300 cr
  • Net working capital: 86 days (vs. 121 days LY) at ₹11,025 cr ( Jun‘25) vs. ₹14,328 cr in LY
  • Net debt at ₹21,371 cr in Jun‘25, reduced by ₹6,129 cr vs. LY
  • Redemption of perpetual bonds of ₹3,409 cr ($400Mn) on its first call date in May’25
  • Second and final call for rights issue partly-paid equity shares for balance $200Mn; proceeds expected by Sep end, subject to regulatory clearances

Management Remarks on Q1 Performance

Jai Shroff, Chairman & Group CEO, UPL Ltd. said, “We are pleased to report a strong start to FY26, reflecting the strength of our portfolio. All the platforms have been able to improve margins and cash generation. The remarkable resilience demonstrated by all our platforms, reaffirms that UPL is on the path of sustainable value creation. In view of this, we continue to see the opportunities of creating value for our shareholders.

While the business platforms continue to attract investments from leading global investors, we remain committed to unlocking value across all the platforms through restructuring, receiving strategic investments, potential liquidity events which also helps to accomplish deleveraging, and we will soon engage advisors to achieve the same.”

Bikash Prasad, Group CFO, UPL Ltd., added, “We are pleased to report a robust financial performance in Q1FY26, underpinned by improved operational efficiency, focus on bottom line and prudent financial management. Effective capital management, reduction in net debt and improved gearing ratios reflect our continued focus on balance sheet strength and long-term sustainable value creation. Our recent outlook upgrade by two global ratings agencies is an endorsement of our financial resilience, strategic clarity, and commitment to sustainable growth, reflecting our endeavour in enhancing long-term stakeholder confidence.”